Directorate General of Foreign Trade has released Policy Circular No. 3 (RE-2001)/1997-2002 on June 7, 2001, concerning the importation of textile and textile articles under Notification No. 3 (RE-2001)/1997-2002. This circular responds to requests for exemptions from conditions related to such imports exclusively intended for export production. It clarifies that these conditions do not apply to imports under Annual Advance Licences and Advance Licences for physical exports issued under specific user conditions. Additionally, the exemption extends to 100% Export-Oriented Units (EOUs) and units in Export Processing Zones (EPZ) and Special Economic Zones (SEZ). However, the conditions apply if these units sell or transfer any textile or textile articles to the Domestic Tariff Area.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
DIRECTORATE GENERAL OF FOREIGN TRADE
UDYOG BHAVAN, New Delhi- 110 011
POLICY CIRCULAR NO. 3 (RE –2001)/1997-2002 Dated: 07.06.2001
To,
All Licensing Authorities
All Commissioners of Customs,
Subject: Condition on import of textile and textile articles as per paragraph 11 of Notification no.3 (RE-2001)/ 1997-2002 dt. 31st March, 2001.
Representations have been received requesting to provide exemption from the above mentioned conditions on import of such textile and textile articles which are imported exclusively for export production.
In this regard, it is hereby clarified that the condition on import of textile and textile articles as per the aforementioned notification, shall not be applicable on imports made under Annual Advance licences and Advance Licences for physical exports issued with actual user condition (Para 7.4 of Exim policy prior to RE-2000, para 7.3(a) of Exim Policy (RE-2000 and RE-2001). Similarly, this condition will not be applicable on imports made by 100% EOUs and units in EPZ/SEZ. However, the aforementioned condition shall be applicable when the 100% EOUs and units in EPZ/SEZ, effects sale/transfer of any textile or textile article to Domestic Tariff Area.
This issues with approval of Director General of Foreign Trade.
(S.K. Bhardwaj)
Dy. Director
